Crypto Stocks Plummet Amid Rising Odds of Fed Rate Hike

The recent performance of crypto stocks has been affected by various factors, leading to a decline in their value. Strategy (MSTR), Coinbase (COIN), and Robinhood (HOOD) are among the companies that have seen their shares plummet.

According to market analysis, MSTR's stock price has dropped 1.85% in a day, closing at $135.6 on March 20. This marks its third straight day of declines, with the shares hovering near the lower end of their recent range.

Similarly, Coinbase (COIN) saw its stock price drop by 2.67%, closing at $197.50 on March 20. Despite posting a strong monthly gain of over 15%, COIN's stock price is still down around 12% so far this year.

The rising odds of a potential Federal Reserve rate hike have contributed to the decline in crypto stocks. The market now sees a 50% chance of a Fed rate hike by the end of 2026, up from expectations of four rate cuts earlier this year. The increase in oil prices and inflation expectations has also driven up interest rates.